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To: Don Earl who wrote (99652)11/12/2008 9:32:32 AM
From: Hawkmoon1 Recommendation  Respond to of 110194
 
As ludicrous as it may seem, our media talking heads point out the "big trouble" China is in because its GDP only increased 9% this year.

Actually, there are some that state that 9% growth is what China requires to maintain forward economic progress. There is a demographic time bomb ticking in China, just as it is in Japan. The one-child policy has drastically altered the revenue/liability curve and within a few decades there will be a huge pension liability that is funded by fewer taxpayers. Japan also faces something similiar because they lack sufficient growth within their taxpayer base necessary to replace the 25% of their population that will be retiring within 10 years. Creation of social expectations amongst the population also creates social liabilities.

blogs.downstream.org

George Shultz on Chinese Demographics:

As somebody put it, will China get rich before it gets old? If it doesn't, it will have a hard time supporting the old.

sfgate.com

Here in the US we have the general ability to replace/augment that taxpayer base through immigration (preferably legal.. ;0).

Hawk